About

Kodak - Funtime

From: Eka Kvirikashvili
To: David Tsiklauri
Case: Eastman Kodak Company: Funtime Film
Problem Definition:From the beginning of the case Kodak’s problem is clearly seen. During January 17 and 24 Kodak stock had lost 8% in value. Also Kodak market share fell by 6%, from 76% to 70% over the past five years. Also the market annual unit growth rate averaged only 2% while the main competitors’ averages were much more impressive – 15% of Fuji and Polaroid and 10% private labels.

The problem is that Kodak is losing its market share while its competitors are contrary increasing on the market and growing their sales. To my mind the main question for Kodak to answer is how to regain the market share and increase growth rate and sales?

Kodak products currently available on the market:
* Kodak Ektar
* Being targeted to professionals and serious amateurs
* Royal Gold * Being targeted to a broader audience for “very special” occasions, e.g. the birth of a baby, the graduation, which is a marketing strategy to influence consumer behavior. * 40% used in advertising

* Kodak Gold Plus
* flagship brand
* 60% of the dollar advertising support
* Funtime Film
* Being targeted to the price-sensitive consumers, which affected consumer decision-making process. * economy brand
* no advertising support
* available in limited quantities and in off-peak seasons

* Kodak‘s Gold plus brand being the industry standard. * Four categories differentiated based on the pricing- Super Premium, premium, economy and price brands * 24-rolls film categorized, based on light sensitivity of film, as ISO 100, 200 & 400 Kodak research has shown that 50% of buyers were “Kodak...

You May Also Find These Documents Helpful

...﻿To: Kelly Johnston, CEO
From: Chief Restructuring Officer
In Reference to:
Executive Summary:
Eastman Kodak is an industry leader in developing, manufacturing, and marketing different imaging products for leisure, commercial, and medical use.
Recently, Kodak attempted to reorganize its architecture
Kodak has been slowly executing a plan to make the transition from a film business, to a profitable and sustainable digital company. Kodak has faced great difficulties such as:
Restructuring costs
High competition
Rapid growth
Low profit margins.
Our company’s architectural restructuring plan was motivated by:
Competition
Our virtual monopoly was eroded through the entry of other firms.
Technological Advancement
Advances in technology have allowed firms to produce new products faster.
Changing Market Environment
These changes have caused us to fall from a once prominent monopoly in the film industry, to such a small player in the digital industry.
To win back market share and increase profits, Kodak did a mass restructuring that failed to provide the expected results.
Decentralize Decision Making
Altering the decision making process from a top-level approval requirement to a more decentralized decision making process of small business units and managers.
Management Annual Performance Plan (MAPP)...

...Kodak in Russia
In the early 1990s, Kodak entered Russia. At the time,
the country was deep in the middle of a turbulent transition
from a Communist-run command economy to a
fledgling democracy that was committed to pushing
through the privatization of state-owned enterprises and
economic reforms designed to establish competitive
markets. Kodak’s entry into this market posed a number
of challenges. Russian consumers had little knowledge
of Kodak’s products, and the consumer market for photography
was very underdeveloped. Moreover, apart
from state-run stores that were generally poorly run,
there was little or no infrastructure in place for distributing
photographic equipment and films and for processing
film. To compound matters, Russian consumers
were poor and unlikely to be able to afford all but the
most inexpensive cameras and films.
A decade later, Kodak’s entry into Russia is widely
regarded as a major success. Russia accounts for a significant
proportion of the $2.59 billion in international
sales in emerging markets that Kodak registered in 2004;
and with a growth rate of 26 percent over the prior year,
Russia is the fastest-growing emerging market for Kodak,
outstripping even China. How did Kodak do it?
First, Kodak had a clear and consistent marketing
message that it communicated to Russian consumers
through a number of media, including radio, television,...

...﻿LaNeisha Hamilton
Kodak and Fujifilm
BUS 302
Professor Mary Lind
July 27, 2013
.
Growing up in a family that loves taking pictures and capturing moments. Kodak and Fujifilm played a huge role and are known companies to me and to many other households around the world. When it comes to the history and the competition few people know. The difference in management strategies plays a key role in the way the two companies’ embraced innovation. Complacency and slow adaptation dominated in Kodak Company while Fujifilm embraced innovation spirit and diversified in all aspects to ensure market relevance. Each of the company’s approach to ethics and social responsibility clearly reflects in both company’s profitability. With an aim to give back to the community and exercise ethical practices, production standards were maintained that satisfied consumers on both ends. A possible change of decision-making process that could embrace flexibility would be the best way to ensure diversity and innovation in any organization
History
.
George Eastman who was the founder of Kodak built a foundation of business on four basic principles: mass production at low cost international distribution, extensive advertising and focus on the customer at the age of fourteen he had to quit school and work to support his mother and two sisters. He took a job as an insurance messenger boy and was paying $3.00 a...

...﻿
CONTENT PAGE
Page
1.
INTRODUCTION
1.1
Organizational “Metamorphosis”
1.2
Focusing the “Focus”
1.3
Legacy of Kodak
1.4
The Kodak “Plunge”
2.
TECHNO-VATION
2.1
Literature Review (Technology and Innovation)
2.2
Analysis
3.
CULTURAL BLUEPRINT
3.1
Literature Review (Organisational Culture)
3.2
Analysis
4.
CHANGE RESISTANCE
4.1
Literature Review (Change Management Models)
4.2
Analysis
5.
RECOMMENDATIONS
5.
CONCLUSION
REFERENCES
1. INTRODUCTION
“Changing organizations is as messy as it is exhilarating, as frustrating as it is satisfying, as muddling-through and creative a process as it is a rational one.” (Palmer et al, 2009).
1.1 Organizational “Metamorphosis”
Change is the only constant that has kept any entity relevant and viable in any aspect. Throughout the centuries, it is notable that by changing and adapting to the environment, an entity will be able to survive or it will get obsolete and ultimately disappear. Relating the above to managing and leading strategic changes, organizations will have to rapidly evolve in an attempt to survive the onslaught of various enmity such intense competitions, technological advancements, consumer needs, etc. to maintain profitability and most importantly business sustainability. Globalization...

...﻿
Kodak and Fujifilm
Management Concepts
Professor Nekia Hackworth
Ife Morrison
5/8/2014
In 1879 George Eastman traveled to London to obtain a patent on his plate coating machine. The patent was granted a year later. Once the patent was granted Mr. Eastman got an investor at the name of Henry A. Strong. Soon after, Henry Strong and Mr. Eastman decided to go into business together. They created a company called Eastman Dry Plate Company. At that time Mr. Eastman quit his job as a banker in order to devote his full attention to his new business venture. Eastman Dry Plate Company was innovative for its time. Mr. Eastman was the first to announce that film could be put on rolls. This attraction to the filming industry made Mr. Eastman a true pioneer in the business. In 1884 the business became known as the Eastman Dry Plate Film Company. The company had 14 shareholders; something that was very rare for its time. It has been noted that Eastman Kodak Company was built on different principles. The principles included mass production at low costs, international distribution, extensive advertising, and a true focus of customer service. They also held principles of business which were foster growth and development through continuous research, treat employees in fair self-respecting ways, and reinvest profits to build and extend the business. Mr. Eastman believed that employees should have more than just good wages. In 1899...

...CASE STUDY REPORT 1
Case Study On Kodak, What Went Wrong?
Patricia A. Webster
Oklahoma Wesleyan University
CASE STUDY REPORT 2
Introduction
This case study will analyze what areas of failure caused Eastman Kodak to continue to have continued underperformance and misalignment within the company’s operations. There were four serious counts of corporate failure on the park of Kodak’s strategic planning and decision making. The analysis will review these failures, recommendations for change will be discussed, and clear explanations as to why the wrong decisions lead to the failure for growth will be reviewed. A conclusion will discuss how Kodak has managed to survive despite the bad corporate decisions and how the company must reconsider the majority of the recent strategic choices they have made.
Strategic Analysis
George Eastman founded Eastman Kodak Company in 1880. Within four years Kodak had become a household name after he replaced glass photographic plates with a roll of film. His decision regarding the company’s philosophy was to focus on quality. He stated, “Nothing is more important than the value of your name and the quality it stands for”. By 1963, color prints surfaced by this company. By 1981 they launched new product lines including cameras, graphical arts, and medical imaging. Their top sales tripled to...

...The Kodak Eastman Company was created in 1880 in Rochester, New York. George Eastman, its founder, created film on a roll allowing photographers and developers to take a picture without having to change a plate every time a picture was taken. Next, Eastman invented the plain black box camera that had a push button to take pictures and a key to advance the film. When the roll of film, normally 100 exposures, was complete the photographer sent the entire camera to the Eastman Company in Rochester for development, reloading of film and printing for a mere $10. The first Kodak camera led to the creation of their first slogan: “You press the button – we do the rest”. He named the brand of camera Kodak because it was short, it would not be mispronounced, and the name was unique in the business. (Gartrell, n.d.)
By the late 19th century and early 1900’s, advertising played a major role in Kodak’s marketing and promotion strategy. As a result, Kodak became a household word. Today, the Kodak name has become entrenched in home town America. It is known for being very American since its photo spots can be seen at iconic patriotic hot spots like Disneyland. In addition “Kodak Moments” help make it a household name for photography and imaging. (Wikinvest, 2007) Kodak has always dominated the “holy trinity of film”; film, paper and chemicals. (Upbin, 2000, para #8)
Kodak’s...

...customers to gain their confidence, focus will on be on the employees to gain their trust, and a relationship will broaden with the suppliers. This paper will describe the organizational change Kodak experienced as a means to maintain success and in this digital driven and diverse economy.
George Eastman's wish was to make "photography as convenient as the pencil" and began by creating the first handheld camera which could take pictures with a push of a button in 1889 (Kodak, 2008). He built the company's success with his own ingenuity and his advertising campaign where he coined the slogan, "you press the button, we do the rest." (Kodak, 2008, para. 28) Since then Eastman and the Kodak brand have been creating film products which enhance both consumer and professional photographers, and Kodak is changing from the traditional company of film and photography and developing into the new "cool" digital company.
The recent changes for Kodak were in their traditional supply chain and introduced their demand-driven model, which proved successful in 2008 (Hickey, 2007). With the CEO and Chairman, Perez stating, "We now have in place our core product portfolio, organizational structure, and leadership team that will take us through the second part of our transformation." (Hickey, 2007, para. 7) Kodak looked at the best practices at Toyota to develop this demand-driven supply chain...